Reno-Tahoe Market Update | February 2021

The 2020 real estate bonanza that dominated the last year shows no signs of abatement in the early days of the new year. As certain segments continue to rebound while others continue to languish in a COVID paralysis, demand for housing in the Reno – Tahoe area remains on a steady upward trajectory. For many consumers, the current demand is a function of upward mobility to find a more suitable habitat during a time when the home has become ever more central to everyday life. More than many others, this is a migration, mostly from Northern Californians, to a region that promises greater affordability, ample economic opportunity, and an elevated quality of life.

 

January saw 778 residential transactions close throughout the region. This is a slight downtick from the same period in 2020 based entirely on rapidly evaporating supply. As evidence, all other metrics show dramatic growth over the same period including median price (+7.5%), the average price (+33% – indicative of a surge in premium real estate), days on market (-32%), and percentage of asking price (99%; +3%).

 

Currently, supply sits at just over 2 months of inventory but much of that is ambitiously priced or unconventional offerings. Achievable supply is much tighter. A mere 1.5 months’ supply exists below $1,000,000. Interestingly, the activity from $500,000 to $1,000,000 is roughly proportionate to that below $500,000. This may be an indicator of the economy whereby those in industries unaffected by current restrictions are finding the means to purchase whereas those in service and other lower-end industries, generally more inclined to be buying at the lower end of the market, are finding it more difficult to make such a purchase.